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Loans | 12 Months Ended
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Dec. 31, 2018
Receivables |
Loans | Note 8 – Loans For a summary of the accounting policies related to loans, interest recognition and allowance for loan losses refer to Note 2 - Summary of S ignificant A ccounting P olicies of this Form 10-K. T he Corporation has presented the loans covered by the loss-sharing agreements with the FDIC separately as “cove red loans” since the risk of loss was significantly different than those not covered under the loss-sharing agreements, due to the loss protection provided by the FDIC. As discussed in Note 10, on May 22, 2018, the Corporation entered into a Termination Agreement with the FDIC to terminate all loss-share arrangements in connection with the Westernbank FDIC-assisted transaction. As a result of the Termination Agreement, assets that were covered by t he loss share agreement, including covered loans in the amount of approximately $514.6 million as of March 31, 2018, were reclassified as non-covered. The Corporation now recognizes entirely all future credit losses, expenses, gains, and recoveries related to the formerly covered assets with no offset due to or from the FDIC. As previously disclosed in Note 4, as a result of the Reliable Transaction completed on August 1, 2018, Popular Auto, LLC, acquired approximately $1.6 billion in retail auto loans a nd $341 million in primarily auto-related commercial loans. These loans are included in the information presented in this note. During the year ended December 31, 2018, the Corporation recorded purchases (including repurchases) of mortgage loans amo unting to $624 million and consumer loans of $205 million, compared to purchases (including repurchases) of mortgage loans of $460 million, consumer loans of $311 million, commercial loans of $2 million and leases of $2 million, during the year ende d December 31, 2017. The Corporation performed whole-loan sales involving approximately $59 million of residential mortgage loans and $30 million of commercial loans during the year ended December 31, 2018 (December 31, 2017 - $64 million of residential mortgage loans). Also, during the year ended December 31, 2018, the Corporation securitized approximately $413 million of mortgage loans into Government National Mortgage Association (“GNMA”) mortgage-backed secu rities and $94 million of mortgage loans into Federal National Mortgage Association (“FNMA”) mortgage-backed securities, compared to $376 million and $86 million, respectively, during the year ended December 31, 2017. Delinq uency status The following table presents the composition of loans held-in-portfolio (“HIP”), net of unearned income, by past due status, and by loan class including those that are in non-performing status or that are accruing interest but are past due 90 days or more at December 31, 2018 and 2017.
December 31, 2018
Puerto Rico
|  |  |  | Past due |  |  |  |  |  |  |  | Past due 90 days or more
|  |  | 30-59 |  | 60-89 |  | 90 days |  | Total |  |  |  |  |  |  | Non-accrual |  |  | Accruing
(In thousands) |  | days |  | days |  | or more |  | past due |  | Current |  | Loans HIP |  |  | loans |  | loans[1]
Commercial multi-family |  | $ | 1,441 |  | $ | 112 |  | $ | 598 |  | $ | 2,151 |  | $ | 143,477 |  | $ | 145,628 |  |  | $ | 546 |  | $ | -
Commercial real estate: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| Non-owner occupied |  |  | 92,075 |  |  | 839 |  |  | 45,691 |  |  | 138,605 |  |  | 2,183,996 |  |  | 2,322,601 |  |  |  | 39,257 |  |  | -
| Owner occupied |  |  | 6,681 |  |  | 10,839 |  |  | 99,235 |  |  | 116,755 |  |  | 1,605,498 |  |  | 1,722,253 |  |  |  | 88,069 |  |  | -
Commercial and industrial |  |  | 4,137 |  |  | 641 |  |  | 55,321 |  |  | 60,099 |  |  | 3,122,062 |  |  | 3,182,161 |  |  |  | 55,078 |  |  | 243
Construction |  |  | - |  |  | - |  |  | 1,788 |  |  | 1,788 |  |  | 84,167 |  |  | 85,955 |  |  |  | 1,788 |  |  | -
Mortgage |  |  | 275,367 |  |  | 128,104 |  |  | 1,043,607 |  |  | 1,447,078 |  |  | 4,986,245 |  |  | 6,433,323 |  |  |  | 323,565 |  |  | 595,525
Leasing |  |  | 7,663 |  |  | 1,827 |  |  | 3,313 |  |  | 12,803 |  |  | 921,970 |  |  | 934,773 |  |  |  | 3,313 |  |  | -
Consumer: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| Credit cards |  |  | 9,504 |  |  | 7,391 |  |  | 16,035 |  |  | 32,930 |  |  | 1,014,343 |  |  | 1,047,273 |  |  |  | - |  |  | 16,035
| Home equity lines of credit |  |  | - |  |  | 97 |  |  | 165 |  |  | 262 |  |  | 5,089 |  |  | 5,351 |  |  |  | 11 |  |  | 154
| Personal |  |  | 13,069 |  |  | 7,907 |  |  | 18,515 |  |  | 39,491 |  |  | 1,211,134 |  |  | 1,250,625 |  |  |  | 17,887 |  |  | 35
| Auto |  |  | 52,204 |  |  | 9,862 |  |  | 24,177 |  |  | 86,243 |  |  | 2,522,542 |  |  | 2,608,785 |  |  |  | 24,050 |  |  | 127
| Other |  |  | 566 |  |  | 288 |  |  | 14,958 |  |  | 15,812 |  |  | 128,932 |  |  | 144,744 |  |  |  | 14,534 |  |  | 424
Total |  | $ | 462,707 |  | $ | 167,907 |  | $ | 1,323,403 |  | $ | 1,954,017 |  | $ | 17,929,455 |  | $ | 19,883,472 |  |  | $ | 568,098 |  | $ | 612,543
[1] | Loans HIP of $143 million accounted for under ASC Subtopic 310-30 are excluded from the above table as they are considered to be performing due to the application of the accretion method, in which these loans will accrete interest income over the remaining life of the loans using estimated cash flow analysis.
December 31, 2018
Popular U.S.
|  |  |  | Past due |  |  |  |  |  |  |  | Past due 90 days or more
|  |  | 30-59 |  | 60-89 |  | 90 days |  | Total |  |  |  |  |  |  | Non-accrual |  |  | Accruing
(In thousands) |  | days |  | days |  | or more |  | past due |  | Current |  | Loans HIP |  |  | loans |  | loans[1]
Commercial multi-family |  | $ | 3,163 |  | $ | - |  | $ | - |  | $ | 3,163 |  | $ | 1,398,377 |  | $ | 1,401,540 |  |  | $ | - |  | $ | -
Commercial real estate: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| Non-owner occupied |  |  | 707 |  |  | 288 |  |  | 365 |  |  | 1,360 |  |  | 1,880,384 |  |  | 1,881,744 |  |  |  | 365 |  |  | -
| Owner occupied |  |  | 5,125 |  |  | 1,728 |  |  | 381 |  |  | 7,234 |  |  | 291,705 |  |  | 298,939 |  |  |  | 381 |  |  | -
Commercial and industrial |  |  | 2,354 |  |  | 995 |  |  | 73,726 |  |  | 77,075 |  |  | 1,011,078 |  |  | 1,088,153 |  |  |  | 330 |  |  | -
Construction |  |  | - |  |  | - |  |  | 12,060 |  |  | 12,060 |  |  | 681,434 |  |  | 693,494 |  |  |  | 12,060 |  |  | -
Mortgage |  |  | 13,615 |  |  | 3,197 |  |  | 11,033 |  |  | 27,845 |  |  | 774,090 |  |  | 801,935 |  |  |  | 11,033 |  |  | -
Legacy |  |  | 195 |  |  | 445 |  |  | 2,627 |  |  | 3,267 |  |  | 22,682 |  |  | 25,949 |  |  |  | 2,627 |  |  | -
Consumer: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| Credit cards |  |  | 2 |  |  | - |  |  | - |  |  | 2 |  |  | 36 |  |  | 38 |  |  |  | - |  |  | -
| Home equity lines of credit |  |  | 886 |  |  | 464 |  |  | 13,579 |  |  | 14,929 |  |  | 128,123 |  |  | 143,052 |  |  |  | 13,579 |  |  | -
| Personal |  |  | 2,319 |  |  | 1,723 |  |  | 2,610 |  |  | 6,652 |  |  | 282,697 |  |  | 289,349 |  |  |  | 2,610 |  |  | -
| Other |  |  | - |  |  | - |  |  | 4 |  |  | 4 |  |  | 220 |  |  | 224 |  |  |  | 4 |  |  | -
Total |  | $ | 28,366 |  | $ | 8,840 |  | $ | 116,385 |  | $ | 153,591 |  | $ | 6,470,826 |  | $ | 6,624,417 |  |  | $ | 42,989 |  | $ | -
[1] | Loans HIP of $73 million accounted for under ASC Subtopic 310-30 are excluded from the above table as they are considered to be performing due to the application of the accretion method, in which these loans will accrete interest income over the remaining life of the loans using estimated cash flow analysis.
December 31, 2018
Popular, Inc.
|  |  | Past due |  |  |  |  |  |  |  | Past due 90 days or more
|  | 30-59 |  | 60-89 |  | 90 days |  | Total |  |  |  |  |  | Non-accrual |  |  | Accruing
(In thousands) | days |  | days |  | or more |  | past due |  | Current |  | Loans HIP[3] [4] |  |  | loans |  | loans[5]
Commercial multi-family | $ | 4,604 |  | $ | 112 |  | $ | 598 |  | $ | 5,314 |  | $ | 1,541,854 |  | $ | 1,547,168 |  |  | $ | 546 |  | $ | -
Commercial real estate: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| Non-owner occupied |  | 92,782 |  |  | 1,127 |  |  | 46,056 |  |  | 139,965 |  |  | 4,064,380 |  |  | 4,204,345 |  |  |  | 39,622 |  |  | -
| Owner occupied |  | 11,806 |  |  | 12,567 |  |  | 99,616 |  |  | 123,989 |  |  | 1,897,203 |  |  | 2,021,192 |  |  |  | 88,450 |  |  | -
Commercial and industrial |  | 6,491 |  |  | 1,636 |  |  | 129,047 |  |  | 137,174 |  |  | 4,133,140 |  |  | 4,270,314 |  |  |  | 55,408 |  |  | 243
Construction |  | - |  |  | - |  |  | 13,848 |  |  | 13,848 |  |  | 765,601 |  |  | 779,449 |  |  |  | 13,848 |  |  | -
Mortgage[1] |  | 288,982 |  |  | 131,301 |  |  | 1,054,640 |  |  | 1,474,923 |  |  | 5,760,335 |  |  | 7,235,258 |  |  |  | 334,598 |  |  | 595,525
Leasing |  | 7,663 |  |  | 1,827 |  |  | 3,313 |  |  | 12,803 |  |  | 921,970 |  |  | 934,773 |  |  |  | 3,313 |  |  | -
Legacy[2] |  | 195 |  |  | 445 |  |  | 2,627 |  |  | 3,267 |  |  | 22,682 |  |  | 25,949 |  |  |  | 2,627 |  |  | -
Consumer: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| Credit cards |  | 9,506 |  |  | 7,391 |  |  | 16,035 |  |  | 32,932 |  |  | 1,014,379 |  |  | 1,047,311 |  |  |  | - |  |  | 16,035
| Home equity lines of credit |  | 886 |  |  | 561 |  |  | 13,744 |  |  | 15,191 |  |  | 133,212 |  |  | 148,403 |  |  |  | 13,590 |  |  | 154
| Personal |  | 15,388 |  |  | 9,630 |  |  | 21,125 |  |  | 46,143 |  |  | 1,493,831 |  |  | 1,539,974 |  |  |  | 20,497 |  |  | 35
| Auto |  | 52,204 |  |  | 9,862 |  |  | 24,177 |  |  | 86,243 |  |  | 2,522,542 |  |  | 2,608,785 |  |  |  | 24,050 |  |  | 127
| Other |  | 566 |  |  | 288 |  |  | 14,962 |  |  | 15,816 |  |  | 129,152 |  |  | 144,968 |  |  |  | 14,538 |  |  | 424
Total | $ | 491,073 |  | $ | 176,747 |  | $ | 1,439,788 |  | $ | 2,107,608 |  | $ | 24,400,281 |  | $ | 26,507,889 |  |  | $ | 611,087 |  | $ | 612,543
[1] | It is the Corporation’s policy to report delinquent residential mortgage loans insured by FHA or guaranteed by the VA as accruing loans past due 90 days or more as opposed to non-performing since the principal repayment is insured.
[2] | The legacy portfolio is comprised of commercial loans, construction loans and lease financings related to certain lending products exited by the Corporation as part of restructuring efforts carried out in prior years at the Popular U.S. segment.
[3] | Loans held-in-portfolio are net of $156 million in unearned income and exclude $51 million in loans held-for-sale.
[4] | Includes $6.9 billion pledged to secure credit facilities and public funds that the secured parties are not permitted to sell or repledge the collateral, of which $4.8 billion were pledged at the Federal Home Loan Bank ("FHLB") as collateral for borrowings and $2.1 billion at the Federal Reserve Bank ("FRB") for discount window borrowings.
[5] | Loans HIP of $216 million accounted for under ASC Subtopic 310-30 are excluded from the above table as they are considered to be performing due to the application of the accretion method, in which these loans will accrete interest income over the remaining life of the loans using estimated cash flow analysis.
December 31, 2017
Puerto Rico
|  |  |  | Past due |  |  |  |  |  |  |  | Past due 90 days or more
|  |  |  | 30-59 |  |  | 60-89 |  |  | 90 days |  | Total |  |  |  |  | Non-covered |  |  | Non-accrual |  |  | Accruing
(In thousands) |  |  | days |  |  | days |  |  | or more |  | past due |  | Current |  | loans HIP |  |  | loans |  | loans[1]
Commercial multi-family |  | $ | - |  | $ | 426 |  | $ | 1,210 |  | $ | 1,636 |  | $ | 144,763 |  | $ | 146,399 |  |  | $ | 1,115 |  | $ | -
Commercial real estate: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| Non-owner occupied |  |  | 39,617 |  |  | 131 |  |  | 28,045 |  |  | 67,793 |  |  | 2,336,766 |  |  | 2,404,559 |  |  |  | 18,866 |  |  | -
| Owner occupied |  |  | 7,997 |  |  | 2,291 |  |  | 123,929 |  |  | 134,217 |  |  | 1,689,397 |  |  | 1,823,614 |  |  |  | 101,068 |  |  | -
Commercial and industrial |  |  | 3,556 |  |  | 1,251 |  |  | 40,862 |  |  | 45,669 |  |  | 2,845,658 |  |  | 2,891,327 |  |  |  | 40,177 |  |  | 685
Construction |  |  | - |  |  | - |  |  | 170 |  |  | 170 |  |  | 95,199 |  |  | 95,369 |  |  |  | - |  |  | -
Mortgage |  |  | 217,890 |  |  | 77,833 |  |  | 1,596,763 |  |  | 1,892,486 |  |  | 4,684,293 |  |  | 6,576,779 |  |  |  | 306,697 |  |  | 1,204,691
Leasing |  |  | 10,223 |  |  | 1,490 |  |  | 2,974 |  |  | 14,687 |  |  | 795,303 |  |  | 809,990 |  |  |  | 2,974 |  |  | -
Consumer: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| Credit cards |  |  | 7,319 |  |  | 4,464 |  |  | 18,227 |  |  | 30,010 |  |  | 1,063,211 |  |  | 1,093,221 |  |  |  | - |  |  | 18,227
| Home equity lines of credit |  |  | 438 |  |  | 395 |  |  | 257 |  |  | 1,090 |  |  | 4,997 |  |  | 6,087 |  |  |  | - |  |  | 257
| Personal |  |  | 13,926 |  |  | 6,857 |  |  | 19,981 |  |  | 40,764 |  |  | 1,181,548 |  |  | 1,222,312 |  |  |  | 19,460 |  |  | 141
| Auto |  |  | 24,405 |  |  | 5,197 |  |  | 5,466 |  |  | 35,068 |  |  | 815,745 |  |  | 850,813 |  |  |  | 5,466 |  |  | -
| Other |  |  | 537 |  |  | 444 |  |  | 16,765 |  |  | 17,746 |  |  | 139,842 |  |  | 157,588 |  |  |  | 15,617 |  |  | 1,148
Total |  | $ | 325,908 |  | $ | 100,779 |  | $ | 1,854,649 |  | $ | 2,281,336 |  | $ | 15,796,722 |  | $ | 18,078,058 |  |  | $ | 511,440 |  | $ | 1,225,149
[1] | Non-covered loans HIP of $118 million accounted for under ASC Subtopic 310-30 are excluded from the above table as they are considered to be performing due to the application of the accretion method, in which these loans will accrete interest income over the remaining life of the loans using estimated cash flow analysis.
December 31, 2017
Popular U.S.
|  |  |  | Past due |  |  |  |  |  |  |  |  | Past due 90 days or more
|  |  |  | 30-59 |  |  | 60-89 |  |  | 90 days |  |  | Total |  |  |  |  | Non-covered |  |  | Non-accrual |  |  | Accruing
(In thousands) |  |  | days |  |  | days |  |  | or more |  |  | past due |  |  | Current |  |  | loans HIP |  |  | loans |  | loans[1]
Commercial multi-family |  | $ | 395 |  | $ | - |  | $ | 784 |  | $ | 1,179 |  | $ | 1,209,514 |  | $ | 1,210,693 |  |  | $ | 784 |  | $ | -
Commercial real estate: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| Non-owner occupied |  |  | 4,028 |  |  | 1,186 |  |  | 1,599 |  |  | 6,813 |  |  | 1,681,498 |  |  | 1,688,311 |  |  |  | 1,599 |  |  | -
| Owner occupied |  |  | 2,684 |  |  | - |  |  | 862 |  |  | 3,546 |  |  | 315,429 |  |  | 318,975 |  |  |  | 862 |  |  | -
Commercial and industrial |  |  | 1,121 |  |  | 5,278 |  |  | 97,427 |  |  | 103,826 |  |  | 901,157 |  |  | 1,004,983 |  |  |  | 594 |  |  | -
Construction |  |  | - |  |  | - |  |  | - |  |  | - |  |  | 784,660 |  |  | 784,660 |  |  |  | - |  |  | -
Mortgage |  |  | 13,453 |  |  | 6,148 |  |  | 14,852 |  |  | 34,453 |  |  | 659,175 |  |  | 693,628 |  |  |  | 14,852 |  |  | -
Legacy |  |  | 291 |  |  | 417 |  |  | 3,039 |  |  | 3,747 |  |  | 29,233 |  |  | 32,980 |  |  |  | 3,039 |  |  | -
Consumer: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| Credit cards |  |  | 3 |  |  | 2 |  |  | 11 |  |  | 16 |  |  | 84 |  |  | 100 |  |  |  | 11 |  |  | -
| Home equity lines of credit |  |  | 4,653 |  |  | 3,675 |  |  | 14,997 |  |  | 23,325 |  |  | 158,760 |  |  | 182,085 |  |  |  | 14,997 |  |  | -
| Personal |  |  | 3,342 |  |  | 2,149 |  |  | 2,779 |  |  | 8,270 |  |  | 289,732 |  |  | 298,002 |  |  |  | 2,779 |  |  | -
| Other |  |  | - |  |  | - |  |  | - |  |  | - |  |  | 319 |  |  | 319 |  |  |  | - |  |  | -
Total |  | $ | 29,970 |  | $ | 18,855 |  | $ | 136,350 |  | $ | 185,175 |  | $ | 6,029,561 |  | $ | 6,214,736 |  |  | $ | 39,517 |  | $ | -
[1] | Non-covered loans HIP of $97 million accounted for under ASC Subtopic 310-30 are excluded from the above table as they are considered to be performing due to the application of the accretion method, in which these loans will accrete interest income over the remaining life of the loans using estimated cash flow analysis.
December 31, 2017
Popular, Inc.
|  |  | Past due |  |  |  |  |  |  |  | Past due 90 days or more
|  |  | 30-59 |  |  | 60-89 |  |  | 90 days |  |  | Total |  |  |  | Non-covered |  |  | Non-accrual |  |  | Accruing
(In thousands) |  | days |  |  | days |  |  | or more |  |  | past due |  | Current |  | loans HIP[3] [4] |  |  | loans |  | loans[5]
Commercial multi-family | $ | 395 |  | $ | 426 |  | $ | 1,994 |  | $ | 2,815 |  | $ | 1,354,277 |  | $ | 1,357,092 |  |  | $ | 1,899 |  | $ | -
Commercial real estate: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| Non-owner occupied |  | 43,645 |  |  | 1,317 |  |  | 29,644 |  |  | 74,606 |  |  | 4,018,264 |  |  | 4,092,870 |  |  |  | 20,465 |  |  | -
| Owner occupied |  | 10,681 |  |  | 2,291 |  |  | 124,791 |  |  | 137,763 |  |  | 2,004,826 |  |  | 2,142,589 |  |  |  | 101,930 |  |  | -
Commercial and industrial |  | 4,677 |  |  | 6,529 |  |  | 138,289 |  |  | 149,495 |  |  | 3,746,815 |  |  | 3,896,310 |  |  |  | 40,771 |  |  | 685
Construction |  | - |  |  | - |  |  | 170 |  |  | 170 |  |  | 879,859 |  |  | 880,029 |  |  |  | - |  |  | -
Mortgage[1] |  | 231,343 |  |  | 83,981 |  |  | 1,611,615 |  |  | 1,926,939 |  |  | 5,343,468 |  |  | 7,270,407 |  |  |  | 321,549 |  |  | 1,204,691
Leasing |  | 10,223 |  |  | 1,490 |  |  | 2,974 |  |  | 14,687 |  |  | 795,303 |  |  | 809,990 |  |  |  | 2,974 |  |  | -
Legacy[2] |  | 291 |  |  | 417 |  |  | 3,039 |  |  | 3,747 |  |  | 29,233 |  |  | 32,980 |  |  |  | 3,039 |  |  | -
Consumer: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| Credit cards |  | 7,322 |  |  | 4,466 |  |  | 18,238 |  |  | 30,026 |  |  | 1,063,295 |  |  | 1,093,321 |  |  |  | 11 |  |  | 18,227
| Home equity lines of credit |  | 5,091 |  |  | 4,070 |  |  | 15,254 |  |  | 24,415 |  |  | 163,757 |  |  | 188,172 |  |  |  | 14,997 |  |  | 257
| Personal |  | 17,268 |  |  | 9,006 |  |  | 22,760 |  |  | 49,034 |  |  | 1,471,280 |  |  | 1,520,314 |  |  |  | 22,239 |  |  | 141
| Auto |  | 24,405 |  |  | 5,197 |  |  | 5,466 |  |  | 35,068 |  |  | 815,745 |  |  | 850,813 |  |  |  | 5,466 |  |  | -
| Other |  | 537 |  |  | 444 |  |  | 16,765 |  |  | 17,746 |  |  | 140,161 |  |  | 157,907 |  |  |  | 15,617 |  |  | 1,148
Total | $ | 355,878 |  | $ | 119,634 |  | $ | 1,990,999 |  | $ | 2,466,511 |  | $ | 21,826,283 |  | $ | 24,292,794 |  |  | $ | 550,957 |  | $ | 1,225,149
[1] | It is the Corporation’s policy to report delinquent residential mortgage loans insured by FHA or guaranteed by the VA as accruing loans past due 90 days or more as opposed to non-performing since the principal repayment is insured.
[2] | The legacy portfolio is comprised of commercial loans, construction loans and lease financings related to certain lending products exited by the Corporation as part of restructuring efforts carried out in prior years at the Popular U.S. segment.
[3] | Loans held-in-portfolio are net of $131 million in unearned income and exclude $132 million in loans held-for-sale.
[4] | Includes $7.1 billion pledged to secure credit facilities and public funds that the secured parties are not permitted to sell or repledge the collateral, of which $4.6 billion were pledged at the FHLB as collateral for borrowings, $2.0 billion at the FRB for discount window borrowings and $0.5 billion serve as collateral for public funds.
[5] | Non-covered loans HIP of $215 million accounted for under ASC Subtopic 310-30 are excluded from the above table as they are considered to be performing due to the application of the accretion method, in which these loans will accrete interest income over the remaining life of the loans using estimated cash flow analysis.
At December 31, 2018, mortgage loans held-in-portfolio include $1.4 billion of loans insured by the Federal Housing Administration (“FHA”), or guaranteed by the U.S. Department of Veterans Affairs (“VA”) of which $598 million are 90 days or more past due, including $134 million of loans rebooked under the GNMA buyback option, discussed below (December 31, 2017 - $1.8 billion, $1.2 billion and $840 million, respectively). Within th is portfolio, loans in a delinquency status of 90 days or more are reported as accruing loans as opposed to non-performing since the principal repayment is insured. These balances include $283 million of residential mortgage loans in Puerto R ico that are no longer accruing interest as of December 31, 2018 (December 31, 2017 - $178 million). Additionally, the Corporation has approximately $69 million in reverse mortgage loans in Puerto Rico which are guaranteed by FHA, but which are currently not accruing interest at December 31, 2018 (December 31, 2017 - $58 million). L oans with a delinquency status of 90 days past due as of December 31, 2018 include $134 million in loans previously po oled into GNMA securities (December 31, 2017 - $840 million). Under the GNMA program, issuers such as BPPR have the option but not the obligation to repurchase loans that are 90 days or more past due. For accounting purposes, these loans subjec t to the repurchase option are required to be reflected on the financial statements of the Bank with an offsetting liability. The components of the net financing leases receivable at December 31, 2018 and 2017 were as follows:
(In thousands) |  | 2018 |  | 2017
Total minimum lease payments | $ | 781,060 | $ | 681,198
Estimated residual value of leased property (unguaranteed) |  | 293,495 |  | 246,248
Deferred origination costs, net of fees |  | 12,261 |  | 9,496
| Less - Unearned financing income |  | 151,881 |  | 126,797
Net minimum lease payments |  | 934,935 |  | 810,145
| Less - Allowance for loan losses |  | 11,487 |  | 12,000
Net minimum lease payments, net of allowance for loan losses | $ | 923,448 | $ | 798,145
At December 31, 2018, future minimum lease payments are expected to be received as follows:
(In thousands) |  |
2019 | $ | 34,012
2020 |  | 83,797
2021 |  | 137,297
2022 |  | 197,996
2023 and thereafter |  | 327,958
Total | $ | 781,060
Covered loans The following table present s the composition of loans by past due status, and by loan class including those that are in non-performing status or are accruing interest but are past due 90 days or more at December 31, 2017
December 31, 2017
|  |  | Past due |  |  |  |  |  |  |  |  | Past due 90 days or more
|  |  | 30-59 |  | 60-89 |  | 90 days |  | Total |  |  |  |  | Covered |  |  | Non-accrual |  | Accruing
(In thousands) |  | days |  | days |  | or more |  | past due |  |  | Current |  | loans HIP[2] |  |  | loans |  | loans
Mortgage | $ | 16,640 |  | $ | 5,453 |  | $ | 59,018 |  | $ | 81,111 |  | $ | 421,818 |  | $ | 502,929 |  |  | $ | 3,165 |  | $ | -
Consumer |  | 518 |  |  | 147 |  |  | 988 |  |  | 1,653 |  |  | 12,692 |  |  | 14,345 |  |  |  | 188 |  |  | -
Total covered loans[1] | $ | 17,158 |  | $ | 5,600 |  | $ | 60,006 |  | $ | 82,764 |  | $ | 434,510 |  | $ | 517,274 |  |  | $ | 3,353 |  | $ | -
[1] | Covered loans accounted for under ASC Subtopic 310-30 are excluded from the above table as they are considered to be performing due to the application of the accretion method, in which these loans will accrete interest income over the remaining life of the loans using estimated cash flow analyses.
[2] | Includes $279 million pledged to secure credit facilities at the FHLB which are not permitted to sell or repledge the collateral.
Loans acquired with deteriorated credit quality accounted for under ASC 310-30 The following provides information of loans acquired with evidence of credit deterioration as of the acquisition date, accounted for under the guidance of ASC 310-30. The outstanding principal balance of acquired loans accounted pursuant to ASC Subtopic 3 10-30, amounted to $2.2 billion at December 31, 2018 (December 31, 2017 - $2.5 billion). The carrying amount of these loans consisted of loans determined to be impaired at the time of acquisition, which are accounted for in accordance with ASC Subtopic 310-30 (“credit impaired loans”), and loans that were considered to be performing at the acquisition date, accounted for by analogy to ASC Subtopic 310-30 (“non-credit impaired loans”). The following table provides the carrying amo unt of acquired loans accounted for under ASC 310-30 by portfolio at December 31, 2018 and 2017.
Carrying amount
(In thousands) |  | December 31, 2018 |  | December 31, 2017
Commercial real estate | $ | 801,774 | $ | 923,424
Commercial and industrial |  | 84,465 |  | 88,130
Construction |  | - |  | 170
Mortgage |  | 982,821 |  | 1,079,611
Consumer |  | 14,496 |  | 17,658
Carrying amount |  | 1,883,556 |  | 2,108,993
Allowance for loan losses |  | (122,135) |  | (119,505)
Carrying amount, net of allowance | $ | 1,761,421 | $ | 1,989,488
At December 31, 2018, none of the acquired loans accounted for under ASC Subtopic 310-30 were considered non-performing loans. Therefore, interest income, through accretion of the differenc e between the carrying amount of the loans and the expected cash flows, was recognized on all acquired loans. Changes in the carrying amount and the accretable yield for the loans accounted pursuant to the ASC Subtopic 310-30, for the years ended December 31, 2018 and 2017, were as follows:
Carrying amount of acquired loans accounted for pursuant to ASC 310-30
|  |  |  | For the year ended
(In thousands) |  |  |  |  |  |  | December 31, 2018 |  | December 31, 2017
Beginning balance |  |  |  |  |  | $ | 2,108,993 | $ | 2,301,024
Additions |  |  |  |  |  |  | 16,645 |  | 18,824
Accretion |  |  |  |  |  |  | 166,272 |  | 175,121
Collections / loan sales / charge-offs |  |  |  |  |  |  | (408,354) |  | (385,976)
Ending balance[1] |  |  |  |  |  | $ | 1,883,556 | $ | 2,108,993
Allowance for loan losses |  |  |  |  |  |  | (122,135) |  | (119,505)
Ending balance, net of ALLL |  |  |  |  |  | $ | 1,761,421 | $ | 1,989,488
[1] | At December 31, 2018, includes $1.4 billion of loans considered non-credit impaired at the acquisition date (December 31, 2017 - $1.6 billion).
Activity in the accretable yield of acquired loans accounted for pursuant to ASC 310-30
|  |  |  | For the years ended
(In thousands) |  |  |  |  |  | December 31, 2018 |  | December 31, 2017
Beginning balance |  |  |  |  | $ | 1,214,488 | $ | 1,288,983
Additions |  |  |  |  |  | 6,535 |  | 11,218
Accretion |  |  |  |  |  | (166,272) |  | (175,121)
Change in expected cash flows |  |  |  |  |  | 37,753 |  | 89,408
Ending balance[1] |  |  |  |  | $ | 1,092,504 | $ | 1,214,488
[1] | At December 31, 2018, includes $0.8 billion for loans considered non-credit impaired at the acquisition date (December 31, 2017 - $0.9 billion).

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